Disability Benefits Overview*

*Taken from p129 of your Insurance Information Booklet

The Short-Term Disability plan and the Long-Term Disability plan are designed to replace a portion of your income if you become disabled and are unable to work due to illness or injury. You may enroll for the short-term plan separately or one of the long-term plans or a combination of the short-term plan with one long-term plan.



Short-Term Disability Highlights

In-depth Short-term Disability Information

  • Pays $210 per calendar week of disability minus other disability and retirement benefits.
  • Benefits begin on the 31st day of your absence due to total disability or when all accrued paid leave has been exhausted, whichever is later.
  • Benefits may continue for up to 180 days from the date of disability.
  • Benefits are reduced by income payable from other sources such as retirement benefits or workers’ compensation.
  • Pays benefits for a totally disabling pregnancy like any other illness.

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Long-Term Disability Highlights

In-depth Long-term Disability Information

  • Two coverage options are available:
    • benefit equal to 50% of monthly base pay
    • benefit equal to 70% of monthly base pay
  • Benefits are reduced by income payable from other sources such as retirement benefits or workers’ compensation.
  • Maximum monthly benefit is $8,000; minimum is $100.
  • Six-month waiting period.
  • Pays benefits for a totally disabling pregnancy like any other illness.

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Pre-existing Conditions

These plans will not cover a disability which occurs during the first 12 months of your current period of coverage if the disability is caused by, contributed to, or is a consequence of a ”pre-existing condition.” A pre-existing condition is a condition for which you received diagnosis, tests, or treatment or for which you took drugs or medicines prescribed or recommended by a physician, within three months before your current coverage under this plan began.

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Other Income Benefits

Disability benefits will be reduced by any “other income benefits” paid to you or your family due to your disability or retirement as follows:

  • Income received by you from any employer or from any occupation for compensation or profit (other than in connection with an approved rehabilitation program).
  • Disability, retirement or unemployment benefits required or provided for by law, including:
    • disability retirement,
    • disability benefits under workers’ compensation laws or similar laws, to compensate for:
      • loss of past and future wages,
      • impairment of earnings capacity or diminished ability to compete in the open labor market, or
      • any degree of permanent impairment or loss of bodily function or capacity,
    • benefits paid under the Jones Act,
    • retirement benefits based on length of service,
    • unemployment compensation benefits,
    • no-fault wage replacement benefits,
    • statutory disability benefits,
    • disability and retirement benefits under the Federal Social Security Act, the Canada Pension plan, and the Quebec Pension plan, or
    • disability, retirement or unemployment benefits provided under any group insurance or pension plan or any other arrangement of coverage for individuals in a group (whether on an insured or uninsured basis), including sick leave and disability benefits from any State-sponsored or funded retirement system.

If you receive “other income” in a single lump sum, that payment will be subtracted from your disability benefit over 60 months. The disability carrier will have the right to make retroactive adjustments for any lump sum payments received from a retroactive award.

If there is an increase in your government benefits during a period of total disability, the increase will not be considered as “other income benefits” unless it results from a change in the number of your family members, or it results from a correction in the calculation of the benefit level originally established for your disability.

Payments from defined contribution plans, such as the State of Alaska Supplemental Annuity Plan and Deferred Compensation Plan, and Social Security benefits paid to your dependent children 18 years or older, are not considered “other income benefits.”

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Benefits Payments Are Taxable

Since these disability plans are part of the Select Benefits program, you have the advantage of paying for coverage with earnings deducted from your salary before federal income taxes are withheld. That reduces the cost of your coverage. Due to these tax advantages, however, disability benefit payments you receive from the plans are subject to federal income tax.

Filing Claims

You must apply for disability benefits under these plans within one year after the date you become totally disabled.

The carrier, at its own expense, has the right to examine you if you have filed a claim. Examinations may be made as often as they are reasonably required during the period for which you claim benefits.

The carrier also has the right to recover any overpayment of disability benefits either directly from you or by deduction from your future monthly benefit payments.

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Limitations

The Disability Plans will not pay benefits when any of the following occur:

  • You are no longer totally disabled or under the care of a legally-qualified physician. You must be personally seen and treated by physician to be considered under the physician’s care.
  • You begin work at a reasonable occupation, receive compensation or profit, or are paid leave.
  • You fail to furnish required proof of the continuance of total disability or refuse to be examined when required.
  • Your disability benefit period ends, as shown in the Duration of Payments sections.
  • You die. If you have a surviving spouse or children, they will be eligible for a three-month survivor benefit as described in the LTD section, Survivor Income Benefit.

If the plans terminate while you are receiving disability benefits, your benefits will not be affected.

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Exclusions

The Disability Plans will not cover any disability which results from the following:

  • intentionally self-inflicted injuries.
  • your commission of, or your attempt to commit, an assault, battery, or felony.
  • war, or any act of war (whether war is declared or not), insurrection, rebellion, or participation in a riot or civil commotion.

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